Intact Financial Corporation’s third-quarter earnings fell sharply after a summer of floods, storms and wildfires. Premiums and distribution income still grew, the insurer said Tuesday.
Net operating income per share dropped 19% to $3.63 from $4.46 a year earlier. Diluted earnings per share fell 36% to $3.03. Net income attributable to shareholders fell to $562 million, down from $861 million.
Operating direct premiums written rose 5% to $7.006 billion, led by personal lines. The combined ratio climbed to 94.0% from 89.8%, and underwriting income fell 38% to $368 million.
Intact flagged the damage on Oct. 7. It estimated about $660 million in pre-tax catastrophe losses, net of reinsurance, Insurance Business reported.
Personal property absorbed $390 million of that total. Commercial lines took $173 million and personal auto $52 million. Canada accounted for $615 million, driven by flooding, wind damage and British Columbia wildfires.
Catastrophe losses ran four points above expectations for the quarter. In Canadian personal property, they added 33 points, pushing that line’s combined ratio to 105.0%.
Chief financial officer Ken Anderson said losses over the past 12 months totalled $1.29 billion. That is modestly above the company’s annual guidance of $1.20 billion.
Chief executive Charles Brindamour said on Oct. 7 that the events followed benign activity in 2025 and early 2026. “At an industry level, these events reinforce firm market conditions,” he said.
In the recent results, Brindamour said: “Our teams have again demonstrated their commitment to helping our customers recover quickly following the multiple weather events that took place this quarter. We continue to deliver strong financial performance and underlying results with an operating ROE of 16%, underscoring the resilience of our platform.”
The trailing 12-month operating return on equity was 15.8%, down from 19.6% a year earlier.
In Canada, operating premiums grew 7% to $4.939 billion, with personal auto up 10%. The combined ratio there was 95.1%.
UK and Ireland premiums were flat at $1.078 billion. Intact attributed that to combining the RSA and DLG brokered portfolios under one brand. The combined ratio was 94.1%.
US premiums rose 3% to $989 million, with a combined ratio of 85.2%. Intact cited strong new business in its most profitable lines.
Distribution income jumped 16% to $171 million, led by BrokerLink and On Side. Operating net investment income rose 5% to $422 million.
Capital remains solid. Book value per share rose 8% to $111.11, helped by $581 million in buybacks over 12 months. The total capital margin stands at $3.6 billion.
The board declared a quarterly dividend of $1.47 per common share. It is payable Dec. 31 to shareholders of record on Dec. 17.
Intact expects industry premium growth in personal lines in the high-single-digit range, reflecting Alberta auto reforms. It projects low-to-mid single-digit growth in commercial and specialty lines.
For brokers, the figures point to a market that is unlikely to soften quickly. Insurance Business noted that some had expected home pricing to ease after a quieter 2025. Intact’s results make that less likely, particularly for flood-exposed urban areas.
The same analysis said water losses are driving claims. Brokers should therefore expect more scrutiny of sewer backup and overland flood endorsements, deductibles and mitigation measures. Advisers who explain those options early may be better placed at renewal.
